SINGAPORE, Sept. 3 (Xinhua) -- Business conditions in Singapore's private sector saw modest improvement in August, with the seasonally adjusted Purchasing Managers' Index (PMI) registering 51.2, down from 52.7 in July, according to a report released Wednesday by S&P Global.
A PMI reading above 50 indicates expansion, while a reading below 50 suggests contraction. The latest figure marks the seventh consecutive month of growth, though at a slower pace, the report said.
The August data showed that Singapore's private sector remained in expansion midway through the third quarter of 2025, but growth moderated due to the impact of widespread U.S. tariffs, said Jingyi Pan, economics associate director at S&P Global Market Intelligence.
New orders increased at the softest pace in the current seven-month sequence, as U.S. tariffs dampened sales, while overall business confidence also eased from July, Pan noted. Falling employment, purchasing, and inventories all hint at the likelihood of further softening in the near term.
"Additionally, rising input prices and a renewed fall in charges pointed to greater margin pressures for businesses in August, at a time of heightened competition due to the more challenging trade climate," Pan added.
Meanwhile, in a separate report, the Singapore Institute of Purchasing and Materials Management said Tuesday that the country's manufacturing PMI rose by 0.1 point from July to 50 in August, indicating a "limbo" state. ■